Strengthening the Partnership between the US & Saudi Arabia with a $600 Billion Investment

On May 13, 2025, President Donald J. Trump announced a landmark $600 billion investment commitment by Saudi Arabia to the United States, marking a significant milestone in U.S.-Saudi relations. Full of deep implications, the agreement is multipronged, covering defence, technology, energy, infrastructure, and healthcare, to name a few, to encourage economic development and further strategic partnerships between the two countries.

In defence – The $142 billion Arms Deal

First and foremost comes the $142 billion arms deal, the biggest in the history of the United States. Various sorts of advanced military equipment and services related to five main areas will go into this deal:

• Air force and space operations enhancement
• Air and missile defence systems
• Maritime and coastal security
• Border security and land forces modernisation
• Information and communication systems upgrading

Besides this, there are some very large-scale training programs and support services included in the agreement that go to build the capacity of the Saudi armed forces, such as the upgrading of military academies, improvements to military medical services, etc.

Technologies and AI: $100 Billion Dealer

The deal also gives rise to technology and AI investments. For instance, DataVolt is to commit $20 billion in the U.S. for AI data centres and associated energy infrastructure. In the meantime, US tech giants such as Google, Oracle, Salesforce, AMD, and Uber are investing $80 billion toward building transformative technologies in the two countries.

The partnership between US-based Nvidia and Saudi AI startup Humain is one instance in which semiconductor supply is determined for a 500 MW AI data centre project, with delivery of several hundred thousand advanced GPUs over the next five years. 

Infrastructure & Energy

Other sizeable investments are accorded to the infrastructure and energy sectors. U.S. project firms Hill International, Jacobs, Parsons, and AECOM have been contracted to perform concluding $2 billion services export projects on King Salman International Airport and Qiddiya City.

GE Vernova will be exporting gas turbines and energy solutions worth $14.2 billion. Boeing has signed an agreement for the supply of 737-8 Passenger Aircraft worth $4.8 billion to AviLease. In turn, Shamekh IV Solutions, LLC plans to invest $5.8 billion into the healthcare sector, including a high-capacity IV Fluid facility in Michigan.

Strategic Investment Funds

To further strengthen economic ties, several sector-specific funds have been established:

• A $5 billion Energy Investment Fund.
• A $5 billion New Era Aerospace and Defence Technology Fund.
• A $4 billion Enfield Sports Global Sports Fund.

These funds aim to channel substantial capital into American industries, driving innovation and creating high-quality jobs across the United States.

A New Era of US & Saudi Relations

This historic agreement signifies a deepening of the strategic partnership between the United States and Saudi Arabia. By fostering collaboration across critical sectors, both nations aim to promote economic prosperity, technological advancement, and regional stability.